Banks Can't Seize Land From Farmers With Title Deeds, Says Tagwirei
Kudakwashe Tagwirei, chairperson of the Land Tenure Implementation Committee, said the introduction of bankable title deeds for State-owned land will not result in financial institutions seizing large tracts of land or lead to a reversal of the Land Reform Programme.
Speaking on ZBCTV’s “Face the Nation” programme on Wednesday night, Tagwirei said it would be impossible for banks to confiscate land from beneficiaries of the agrarian reform who fail to repay loans extended under the scheme.
He also rejected claims that he would personally seize land from struggling or defaulting farmers, adding that the issuance of title deeds would indirectly address issues related to multiple farm ownership. Said Tagwirei:
The land belongs to the Government, it does not belong to the bank. If you look at the total value of this land that we are talking about, the actual value is around US$20 billion. There is no bank that can give a mortgage for that land.
So what the banks are merely doing is administering the mortgage that this farmer is going to get (through Government) on that piece of land. The ultimate owner of this land still remains Government, it’s not the bank that owns it.
When the bank is ‘repossessing’ this land for whatever reason, maybe the farmer has failed to pay, remember that the owner is still the Government… ok? They (banks) will have to consult Government, obviously, when they are doing that process.
One of the things that you must understand is that these farmers are supposed to be commercial farmers, not subsistence farmers.
When you were applying to get that piece of land, you were saying I want to be a commercial farmer.
And the risks that are associated with being a commercial farmer are that you must make sure that you work the land so that you are able to pay back.
Tagwirei said that because title deeds are allocated based on an individual’s unique national identification (ID) number, this system could help address public concerns about multiple farm ownership. He said:
When an ID is given to an individual, to a citizen of this country, the ID is a unique identifier to an individual. When we are issuing title to a farmer, the main focus point is the ID number; we will issue it on the basis of that ID number.
When the bank repossesses this land — because a bank cannot take land — on behalf of Government, the bank cannot then own the land because they have no ID number.
Tagwirei revealed that banks would solely administer a fund designed to, among other things, provide affordable financing to farmers.
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